A discussion of knowledge and Knowledge- Based design as related to the design of aircraft is presented. The paper discusses the perceived problem with existing design studies and introduces the concepts of design and knowledge for a Knowledge- Based design system. A review of several Knowledge-Based design activities is provided. A Virtual Reality, Knowledge-Based system is proposed and reviewed. The feasibility of Virtual Reality to improve the efficiency and effectiveness of aerodynamic and multidisciplinary design, evaluation, and analysis of aircraft through the coupling of virtual reality technology and a Knowledge-Based design system is also reviewed. The final section of the paper discusses future directions for design and the role of Knowledge-Based design.